BGB: Discount Provides Alpha Opportunity

2025-05-06 17:46:42 ET

Summary

• Blackstone Strategic Credit 2027 Term Fund is a term-structured closed-end fund, which can make its discount even more important as we near the final couple of years.
• Term funds can extend their liquidation date or even attempt to go perpetual, though it is usually only in a manner that would benefit shareholders.
• Due to the term structure for BGB, there is an opportunity to generate alpha while collecting a monthly distribution until its anticipated termination.

Written by Nick Ackerman, co-produced by Stanford Chemist.

Blackstone Strategic Credit 2027 Term Fund ( BGB ) is a closed-end fund, or CEF, that provides exposure to high-yielding securities, primarily senior secured loans. This is offered by one of the world's largest and well-respected alternative investment managers, Blackstone ( BX ). The fund has seen a bit of volatility recently as we saw high-yield spreads widen, though it was off of some of the lowest levels we've seen historically....

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